Construction starts at Angus Cereals facility at Montrose

December 17th, 2010

Work on Angus Cereals` 43,000 tonne grain storage and processing centre at Montrose is to start this week.

Plans are to complete the first 25,000 tonne storage facility - which is backed by 45 local farmers and supported by a £2.26 million grant from the Scottish Government - prior to harvest 2011.

According to Angus Cereals Chairman, Jim Cargill, final legal agreements with Montrose Port Authority were signed last month and banking facilities have been confirmed with Lloyds Bank Corporate Markets.

`This is a superb platform from which to launch the offer of our next phase plans for further storage, eight months ahead of schedule,` said Mr Cargill.

Infrastructure for phase one of the project also includes 500 tonne per hour capacity intake lines, 200 tonne per hour driers and new ship loading facilities with access to the new deep water berth currently under construction by the Montrose Port Authority.

`Too often in the past, our high quality crops have to be partly dried and double handled through ageing on farm or third party facilities before being transported to the consumer point where further processing is undertaken.

`Such a process can take weeks and creates enormous frustration, inefficiency and wasted cost. In contrast, Angus Cereals will ensure this can be completed in one operation saving costs and improving efficiency not just for growers, but also our customers,` he said.

`The dockside location also reduces the costs of any exports through the facility, which will improve net returns to growers while at the same time retaining their ability to service local markets.`

Mr Cargill also pointed out that the fact that the project was grant aided has significantly reduced costs for farmer investors. `In addition, those who have purchased storage rights in the venture have the opportunity to invest in new storage and to spread their costs over a longer period,` he said.

Angus Cereals has appointed Openfield, another farmer owned business which is driving forward the development of central stores, as its strategic marketing partner.

Openfield is also the marketing partner for Aberdeen Grain, which has recently attracted a further 30 new farmer members and is finalising plans for a 14,500 tonne extension at its Whiterashes facility.

Importantly the new venture at Angus Cereals is owned by local farmers and, by working closely with Aberdeen Grain, aims to radically change the infrastructure within Scottish cereal production.

The two grain businesses combined will between them be marketing over 120,000 tonnes of Scottish grain providing growers with a real opportunity to enter into strategic supply chain partnerships delivering local provenance and a guaranteed quality material.

New members interested in either venture should contact Bruce Ferguson - Openfield Scottish Manager - Tel 07730 638486, or Farm Business Manager, Gavin Will on 07831 698714.